How to choose a financial advisor: 10 questions

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Two stock market crashes, one financial crisis and three Ponzi schemes later (Madoff, Stanford, Petters), it's understandable that consumers are bewildered when it comes to selecting a financial advisor.

But if you realize that you don't have the time, energy or temperament to manage your finances, where do you turn? There are a variety of sources to consider for advice. The best solution depends on who you are and what your needs are. This process requires that you know the right questions to ask.

Here are the 10 questions to ask any potential financial advisor, broker or insurance salesman:

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malpitcher says:: I would highly suggest asking friends, family, neighbors, etc for referrals. A referral often can prove a good track record and that is what I am interested in. I want to know that the advisor's accounts have been able to weather the storm of the markets over the years. That is how I found my advisor, Keith Steidle, about five years ago. Of course I asked the relevant questions, but I also asked them of the people who suggested him to begin with.; reply

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ChrisGrande100 says:: Hi Jill,

good points - one issue I'll raise for further research:

the 3 references request may put an RIA in trouble with the rules against testimonials. Different attorneys/advisors have given me mixed answers on that.

Thanks for writing this good summary,

Chris; reply